The MCA is constantly striving to find out and strike off the Companies which are only on the papers and defunct. In July, 2018 it came up with KYC of Directors to update its Directors database and now it came up with Companies (Incorporation) Amendment Rules, 2019 which is KYC to the Companies incorporated on or before 31.12.2017.
“Want to have status ACTIVE – COMPLAINT, comply and be PROACTIVE, file eForm ACTIVE”
In exercise of the powers conferred by sub-section (9) of Sec 12 and subsections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government makes the rules to further amend the Companies (Incorporation) Rules, 2014.
When these Rules will come in to Force?
These Rules came into force with effect from 25th February, 2019.
What are these Rules and what are the contents of these Rules?
Through these Rules, the Ministry has inserted new Rule No. 25A to Companies (Incorporation) Rules, 2014. These Rules are called “Active Company Tagging Identity and Verification (ACTIVE)”.
The text of the Rules reads as below:
25A. Active Company Tagging Identities and Verification (ACTIVE).-(1) Every company incorporated on or before the 31st December, 2017 shall file the particulars of the company and its registered office, in e-Form ACTIVE (Active Company Tagging Identities and Verification) on or before 25.04.2019.
Provided that any company which has not filed its due financial statements under section 137 or due annual returns under section 92 or both with the Registrar shall be restricted from filing e-Form-ACTIVE, unless such company is under management dispute and the Registrar has recorded the same on the register:
Provided further that companies which have been struck off or are under process of striking off or under liquidation or amalgamated or dissolved, as recorded in the register, shall not be required to file e Form ACTIVE:
Provided also that in case a company does not intimate the said particulars, the Company shall be marked as “ACTlVE-non-compliant” on or after 26th April, 2019 and shall be liable for action under sub-section (9) of section 12 of the Act:
Provided also that no request for recording the following event based information or changes shall be accepted by the Registrar from such companies marked as “ACTIVE non-compliant”. unless ” e-Form ACTIVE” is filed –
(2) Where a company files “e-Form ACTIVE”, on or after 26th April 2019, the company shall be marked as “ACTIVE Compliant”, on payment of fee of ten thousand rupees”.
Which Companies have to file e-Form ACTIVE?
Every Company incorporated on or before 31.12.2017 needs to file e-Form ACTIVE. However filing of this form is not required for the following Companies:
Please noe – Filing of E Form ACTIVE is restricted for Company which has not filed its financial statements / Annual Return although the same is required to file the same. So such companies can file E-Form ACTIVE only after filing of its financial statements / Annual Return.
What are the documents and details to be filed with the Form ACTIVE?
Whether the Form needs the Certification?
Yes. It needs to be certified as follows:
What are the effects and what is the remedy if a Company fails to file Form ACTIVE on or before 25.04.2019?
Effects of non-filing Form ACTIVE:
Such Company can file Form ACTIVE after 25.04.2019 with payment of fees of Rs. 10,000/-.
Finally we can conclude that MCA is indirectly instructing all the Companies and its Directors that if you enter the system and want to continue in the system, be active, don’t be ignorant about the Laws in force and be complaint. If you are not complaint and want to continue pay the penalty otherwise get out of the system.
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